Slide 1
Speaker: Keith Yates
World Class Zircon Developmentsin the Eucla basin
Slide 2
Zircon MarketZircon Market
Slide 3
Zircon MarketZircon Market
Indicative MarketShare - Zircon
Indicative MarketShare - Zircon
Bemax2%
Ticor10%
DuPont6% Namakwa
11%
BHPB10%
Rio Tinto10%
Iluka 37%
Others14%
Source: Iluka
Slide 4
• World’s foremost zircon source
• 10Mt of HM, ~5Mt zircon in 3 world class deposits – J/A + Tripitaka
• More discoveries likely
• World’s foremost zircon source
• 10Mt of HM, ~5Mt zircon in 3 world class deposits – J/A + Tripitaka
• More discoveries likely
Eucla Basin – HM ProjectsEucla Basin – HM Projects
Discovery HistoryDiscovery History
• Jacinth – Nov 04
• Ambrosia – Dec 04
• Tripitaka – Nov 05
• Gullivers – June 06
• Cyclone – July 07
• Typhoon – July 07
• Jacinth – Nov 04
• Ambrosia – Dec 04
• Tripitaka – Nov 05
• Gullivers – June 06
• Cyclone – July 07
• Typhoon – July 07
Slide 5
Iluka discoveriesIluka discoveriesTripitaka
Adelaide/IlukaTripitaka
Adelaide/Iluka
SAWA
Ceduna
Eucla Basin - Potentially world’s premier zircon sourceEucla Basin - Potentially world’s premier zircon source
Slide 6
Regional DTM ImageRegional DTM Image
JacinthAmbrosiaTyphoon
JacinthAmbrosiaTyphoon
TripitakaTripitaka
CedunaCeduna60 KM60 KM
Slide 7
Trans Australia Railway
Port Lincoln Adelaide
Eyre HighwayCeduna
300 Kilometres
EUCLA BASIN
Application date
No. oftenements Size km2 Total Area km2
2003 8 10691 18814
2001 1 1892 56592002 1 2464 8123
2004 28 25120 45420
2001 2 3767 3767
2003 1 1486 20300
Iluka TenementsIluka Tenements
Adelaide ResourcesTenements subject toColona JV with Iluka
Adelaide ResourcesTenements subject toColona JV with Iluka(5250 sq. km.)(5250 sq. km.)
Iluka Discoveries
2005 4 3070 484902006 1 288 48778
Tripitaka
Tenement HistoryTenement History
Slide 8
Eucla Basin HM – OverviewEucla Basin HM – Overview
• Discoveries to date
• Jacinth-Ambrosia (100% ILU)
• Tripitaka (~70% ILU/~30ADN)
• Gullivers (100% ILU)
• Typhoon (100% ILU)
• 10.1 million tonnes of Heavy Mineral booked as resource to date
• Zircon assemblages: 47% - 68%
• ~5 million tonnes of in-ground zircon
• Jacinth-Ambrosia DFS well advanced
• Tripitaka in PFS
• Strong prospects of further discoveries
• Discoveries to date
• Jacinth-Ambrosia (100% ILU)
• Tripitaka (~70% ILU/~30ADN)
• Gullivers (100% ILU)
• Typhoon (100% ILU)
• 10.1 million tonnes of Heavy Mineral booked as resource to date
• Zircon assemblages: 47% - 68%
• ~5 million tonnes of in-ground zircon
• Jacinth-Ambrosia DFS well advanced
• Tripitaka in PFS
• Strong prospects of further discoveries
Source: Iluka
Slide 9
Province Company MT %HM HM Mt % Zircon
% Rutile
% Ilmenite(7)
A$/t HM conc(8)
A$/t in ground
Stradbroke Is (1) Iluka 808 0.9% 7.0 11% 14% 45% 239 2.20
Murray Basin (1) Iluka 387 11.5% 44.4 10% 13% 48% 226
Murray Basin (2) Bemax 2321 2.9% 67.5 10% 17% 53% 255 7.40
Murray Basin (3) Aust. Zircon 172 3.2% 5.6 19% 11% 66% 318 10.20
WA mid-west (1) Iluka 851 5.2% 44.0 11% 6% 52% 198 10.30
WA south-west (1) Iluka 529 8.2% 43.4 8% 1% 79% 167 13.70
WA south-west (2) Bemax 142 9.6% 13.9 9% 82% 171 16.40
Tiwi Islands(4) Matilda Min. 7 4.4% 0.3 36% 32% 506 22.30
Eucla Basin Iluka 219 4.3% 9.2 48% 5% 28% 538 23.10
Eucla Basin (5) TRIPITAKA 42 2.4% 1.0 65% 5% 9% 689 16.50
Data Sources and Notes(1) - Iluka Resources Limited Concise Annual Report 2005(2) - Bemax Resources NL 2005 Annual Report(3) - Australian Zircon NL 2006 Annual Report (4) – Matilda Minerals 2006 Annual Report(5) – ADN/Iluka ASX announcement 27 Sept 06(6) - Iluka Resources Limited ASX announcement 17 Aug 2006(7) - Includes various Ti minerals including leucoxene and HiTi Illmenite which may sell for higher prices(8) - Based on prices from Bemax Sept06 QR
Commodity A$/tonneZircon $1000Rutile $600
Ilmenite $100
26.00
(1&6)
19%
Comparison of Australian HM Resources (Feb07)Comparison of Australian HM Resources (Feb07)
Slide 10
Exceptional Zircon AssemblageExceptional Zircon Assemblage
Slide 11
• Brownfield development
• Processing using existing MSP facilities at Narngulu, Western Australia
• Estimated capex ~A$400 million
• Production potential
• ~300,000 tonnes per annum zircon in initial years
• estimated total project production ~3 million tonnes of zircon
• ~120,000 tonnes per annum ilmenite
• ~30,000 tonnes per annum of rutile in initial years
• Estimated 15+ year life of mine (dependent on production profile)
• DFS completion mid-2008
• First production expected mid 2010
• Brownfield development
• Processing using existing MSP facilities at Narngulu, Western Australia
• Estimated capex ~A$400 million
• Production potential
• ~300,000 tonnes per annum zircon in initial years
• estimated total project production ~3 million tonnes of zircon
• ~120,000 tonnes per annum ilmenite
• ~30,000 tonnes per annum of rutile in initial years
• Estimated 15+ year life of mine (dependent on production profile)
• DFS completion mid-2008
• First production expected mid 2010
Jacinth-Ambrosia ProjectJacinth-Ambrosia Project
Source: Iluka
Slide 12
Mining Method• conventional dry mining in large open pit• overburden removal by scraper• dozer trap mining
Wet Concentration• MC2 concentrator relocated from Georgia
Infrastructure• hyper saline water source• small RO plant for fresh water• 100 person permanent village• Ooldea Road upgraded and sealed
Mineral Separation Plant• Narngulu, Geraldton WA• Other group capacity
Port Facilities• HMC shipped from Port of Ceduna, South Australia (~200kms from mine site)• Final product shipped from Geraldton, Western Australia
Mining Method• conventional dry mining in large open pit• overburden removal by scraper• dozer trap mining
Wet Concentration• MC2 concentrator relocated from Georgia
Infrastructure• hyper saline water source• small RO plant for fresh water• 100 person permanent village• Ooldea Road upgraded and sealed
Mineral Separation Plant• Narngulu, Geraldton WA• Other group capacity
Port Facilities• HMC shipped from Port of Ceduna, South Australia (~200kms from mine site)• Final product shipped from Geraldton, Western Australia
Development Concept for J/ADevelopment Concept for J/A
Source: Iluka
Slide 13
• Strategic holding in basin heartland
• Tripitaka – world class1Mt of HM, 0.65Mt of zircon
• Adres share ~30%
• PFS completion Q1 2008
• Discovery potential high
• Strategic holding in basin heartland
• Tripitaka – world class1Mt of HM, 0.65Mt of zircon
• Adres share ~30%
• PFS completion Q1 2008
• Discovery potential high
Tripitaka Zircon ProjectTripitaka Zircon Project
Slide 14
ILUKA 100% (400,000t HM)
COLONA JV
– ILUKA 51% (306,000t HM)– AdRes 49% (294,000t HM)
400,000t HM
600,000t HM
1,000,000t HM
(650,000t zircon)TRIPITAKA
Ownership Total
Tripitaka Inferred ResourcesTripitaka Inferred Resources
Adelaide Resources share ~0.3 million tonnes of HM
Slide 15
Tripitaka Resource DrillingTripitaka Resource Drilling
Slide 16
Tripitaka Resource DrillingTripitaka Resource Drilling
Slide 17
90km from Ceduna toTripitaka turn-off
Ambrosia
Jacinth
Tripitaka
Tripitaka has a favourable locationTripitaka has a favourable location
Slide 18
• Elements of PFS• Elements of PFS
- Mine planning- Resource upgrade
- Water supply
- Metallurgy
- Environment- Permitting
- Native Title
- Mine planning- Resource upgrade
- Water supply
- Metallurgy
- Environment- Permitting
- Native Title
Tripitaka Prefeasibility Study (PFS)Tripitaka Prefeasibility Study (PFS)
Slide 19
Water Exploration
Resource Drilling
Tripitaka PFS Work ModulesTripitaka PFS Work Modules
Section5085SESection5085SE
Slide 20
1000m
21m @ 5.6%HMincl 3 @ 15.4%HM
Colona Joint Venture
IlukaResources
21m @ 4.1%HM
Tripitaka - Section 5085SE (looking North)Tripitaka - Section 5085SE (looking North)
Slide 21
• PFS scheduled for completion in firstquarter of calendar 2008
• PFS report will include the scope, cost andschedule for a definitive feasibility study (DFS)
• Colona Joint Venture to then decide on DFS
• PFS scheduled for completion in firstquarter of calendar 2008
• PFS report will include the scope, cost andschedule for a definitive feasibility study (DFS)
• Colona Joint Venture to then decide on DFS
Tripitaka PFSTripitaka PFS
Slide 22
Zircon Exploration - Typhoon Discovery Follow-upZircon Exploration - Typhoon Discovery Follow-up
Jacinth
Typhoon Results 21m @ 4.7%HM from 1.5m17% zircon in assemblage
Slide 23
Quasar Joint VentureQuasar Joint Venture
• JV with Quasar Resources –discoverer of the Four Miledeposit
• Major drilling programunderway
• Drilling to target the Narlaby and Yaninee palaeochannels
• Utilisation of PFN instruments
• JV with Quasar Resources –discoverer of the Four Miledeposit
• Major drilling programunderway
• Drilling to target the Narlaby and Yaninee palaeochannels
• Utilisation of PFN instruments
Slide 24
Providing shareholders with discovery opportunities!Providing shareholders with discovery opportunities!
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